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eBay Sets up $6.4 Million Fund to Settle Lawsuit

Two online sellers filed class action lawsuits against eBay claiming it did not make it clear that it charged recurring fees for Good Til Canceled listings, and on Friday, sellers began receiving notice of a settlement the parties reached in Noll et. al v. eBay Inc. et al. in January.

eBay set up a $6.4 million settlement fund, but typically most individual sellers don’t receive big payoffs in such cases.

According to eBay’s law firm Cooley LLP writing about the case in 2012, the lawsuit claimed eBay deliberately tricked customers into paying recurring fees for its “Good ‘Til Canceled” listings, which automatically renew every 30 days until the seller cancels the listing or the item is sold. But, it wrote, the judge tossed the claims of fraud, ruling the plaintiff Richard Noll hadn’t provided sufficient details of eBay’s alleged misrepresentations.

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According to the lawsuit, the seller Noll did not expect that the timing or amount of Listing Fees would appear at the end of the eBay Fees Schedule in an area entitled “The fine print.” And it claimed eBay’s Sell Your Item listing form used by Noll to create GTC listings omitted any disclosure that that GTC Listings entailed recurring charges for all Listing Fees every 30 days.

Under the terms of the settlement, eBay will establish a Gross Settlement Fund in the amount of $6,400,000. The named plaintiffs will receive an enhancement award of $15,000 for their participation.

Their attorneys will receive 25% of the Gross Settlement Fund ($1.6 million) plus reasonable out-of-pocket costs and expenses.

Claims Administrator will be compensated for costs incurred.

After all those payments have been satisfied, the remaining funds will be distributed as credits to class members.

A fairness hearing is scheduled for June 11, 2015, in San Jose, and more information is available on a website set up by the claims administrator.

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Ina Steiner

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. Send news tips to ina@ecommercebytes.com.


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